Is There Still Nazi-looted Art in Italy?

Yes, there is and no, it is not in the hands of modern-day Nazis and Fascists in Italy. Nazi-looted artwork can be found in museums, private collections, and in the hands of some of the countless private art galleries throughout the Republic.?Italian museums have been criticised as slow to implement the provisions of the 1998 Washington Conference Principles on Nazi-Confiscated Art but to be fair, they seem to be comparable to many of the world’s museums that have not yet fully researched their collections and published the provenance of their holdings.??

In our view, much of the Nazi-looted art in Italy is hidden away in private collections or with dealers who are reluctant to come forward. In fact, nine out of the last ten Italian restitution cases handled by Art Recovery International involved artworks that were not part of a museum collection. It is important to note that while the Washington Principles do not apply to private dealers and collectors, Nazi-looted artworks could still be seized by authorities or subject to legal proceedings in other jurisdictions.

Most often, Nazi-era artworks come to our attention when these objects are offered for sale publicly or presented to us for extensive due diligence research. On occasion, an artwork with a known Nazi-looted provenance, or one with a huge gap in provenance (suggesting a wartime connection), will be consigned for sale through an Italian auction house where it will be flagged by many of the world’s top researchers.

Often, we see English and American law firms pounce on these cases quickly by filing proceedings in Italy to suspend public sales, whether at auction or by a gallery. This is often the beginning of a long and expensive public process to return Nazi-looted art to the heirs of the original owners who suffered horrors at the hands of the Nazi regime. Sometimes, these foreign firms hire local counsel to handle the proceedings and to navigate the complex Italian justice system.

One step that is often overlooked before legal proceedings are filed is alternative dispute resolution or simply put, meeting with your adversary, reviewing the provenance or history of the artwork, reviewing the strength of the claim and documentation, and fashioning a discreet resolution that keeps the parties out of litigation.

Many large law firms are beginning to listen more closely to their art world clients who want to avoid expensive litigation by offering mediation services.?The art world can be a small and insular place where news travels fast. Press reports of parties involved in litigation can do serious damage to one’s reputation and standing in the art world if they become known as unnecessarily litigious. Little regard is given to whether the litigant is on the right side of the law or not.

We have represented numerous families around the world who have made claims against Italian museums, galleries, and collectors with every case being resolved by an amicable and confidential settlement agreement. These families have chosen not to litigate their claims due to the huge cost in doing so and the considerable time these claims can take via the court system in Italy. In addition, litigation is public and most of our claimants don’t want to relive the pain of the past in the press.

Our success in recovering Nazi-looted artwork in Italy has led to a number of art dealers and collectors requesting our assistance in reviewing potential claims against artwork in their possession. Again, these clients are seeking absolute discretion which is important in Italian society and critical to doing business in Italy.

Recently, we were approached by an Italian art dealer to resolve a dispute over a Nazi-looted Francesco Guardi painting that surfaced in Milan. The dealer paid an English-French lawyer from a large London law firm nearly ￡25,000 in fees before giving up. Frustrated at the lack of progress, we were asked to take over and find a way to settle the dispute. Within a matter of weeks, we located the heirs who had a claim to the painting and negotiated a just and fair solution between the heirs and the art dealer. The painting can now be offered for sale with its proper provenance revealed and title cleared.

Another recent case came to us via an Italian collector frustrated at having the sale of a Botticelli painting held up because of a Nazi-looted art claim. The claim was not particularly strong but the attorney for the claimants was unyielding in his demand for 50% of the sale proceeds without providing much documentation.?The collector offered as much as 20% of the sale proceeds in recognition of the family’s suffering but it was rejected by the claimants. In the course of our research, we were able to locate records in a foreign archive that showed that the claimants managed to get the painting out of Nazi Germany and sell it for a fair price in the early 1950s in the London art market. The claim was withdrawn as the claimants were simply not entitled to compensation.?

At Art Recovery International, we inform our clients (both claimants and art dealers/collectors) that we stand by the language of the Washington Principles and will work “expeditiously to achieve a just and fair solution, recognizing this may vary according to the facts and circumstances surrounding a specific case”. This means demanding unconditional restitution of Nazi-looted artworks when appropriate or a mediated settlement when the facts call for one.

Many in the art trade question whether there should be a time limit on cases involving Nazi-looting. It’s difficult to contemplate a limitation on such claims when 77 years after WWII we are still dealing with museums refusing or neglecting to research their collections and dealers/collectors hiding Nazi-looted objects from claimants. We have seen that the problem of Nazi looting will not simply disappear with time until it is adequately and proactively addressed.